Food Gifting in the U.S., 2nd Edition

Aug 1, 2010
150 Pages - Pub ID: LA2642049
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The U.S. market for food gifting continues to expand in sales and product offerings, and is one of the few areas of gifting that is doing so in the current challenged economy. Consumer interest in food gifts continues to increase, with sales up 9.6% from 2007 to 2009. This market is driven by many factors, including consumers wishing to save themselves agony over gift decisions while desiring to give a gift that is unique, personal, indulgent, convenient, fun to share and sure to please. The corporate food gifting sector, although considerably smaller in total sales, grew 3.8% between 2007 and 2009.

During the Christmas/Hanukkah holiday season of 2009, consumer purchases of food gifts increased 12% over sales during the same period in 2008. Candy and food spending was up about $10 per person and was the only category that rose among gift items, with shoppers overall diminishing their gift purchases by an average of 3.2% from 2008.

According to CES data, average annual per-person expenditures on food gifts increased from $93 in 2007 to $97 in 2008, and were estimated at $105 in 2009. The average annual per-person expenditures spent on food gifts as a percentage of expenditures for all gifts increased from 7.8% in 2007 to 8.3% in 2009, and is projected at 8.5% in 2010.

Although the trend of self-gifting has decreased overall, it has increased in food gifts.

During the first half of 2010, holiday food gift sales increased from the previous year, indicating a promising year of growth in this sector. A rising interest in gourmet, natural/organic and specialty demographic food gifts (food gifts for kids, food gifts for sports fans, ethnic food gifts, etc.) is fueling demand.

Gift-boxed chocolates remain a mainstay of the food gifting market in the United States, with sales totaling $227.4 million in 2008 and $223.3 million in 2009, a 1.8% decrease.

The continuing expansion of the market for food-gifting is remarkable in that it comes at a time when Americans are reducing spending on gifts overall. Food gifting combines practicality (a consumable item and one that does not require an intimate knowledge of the recipient's lifestyle, needs or tastes). Although clothing remains the most popular Christmas holiday gift, it is also the most likely item to be returned.

Despite the increase in the price of gas over the past few years, brick-and-mortar retailers remain the leading venue for food gifts. Brick-and-mortar retailers held approximately 47% of the food gifting market in 2009, while non-traditional retailers (which includes direct marketers and online food gift retailers) had approximately 53% of the market. Sales of food gifts at brick-and-mortar retailers increased 11% from 2007 to 2009, while online and direct market sales of food gifts increased 5.7% during this period.

Food Gifting in the U.S., Second Edition, focuses on the U.S. market for consumer and corporate food gifts, with a focus on this sector as part of the total gift-giving market. The report analyzes the highly fragmented market by channel, including brick-and-mortar retailers (representing nearly half of all food gift sales), online and direct marketers, and independents, franchises and distributorships. Trends in food gifting are examined, along with factors driving the food-gifting market. The report also reviews the results of an exclusive Packaged Facts online poll, along with marketing, retail and consumer trends and growth opportunities.

Report Methodology

The information in Food Gifting in the U.S., Second Edition, is based on both primary and secondary research. Primary research involved interviews with industry experts and food-gifting business managers. Secondary research entailed gathering data from relevant trade, business and government sources, including the U.S. Bureau of Labor Statistics, Unity Marketing, the National Retail Federation, BIGresearch, IRI InfoScan, company reports, retail audits, trade associations, etc. Consumer data were obtained from Simmons Market Research Bureau’s Fall 2009 National Consumer Study. In addition, Packaged Facts conducted its own online poll of 1,800 adults in May 2010 to measure the spending and attitudes of shoppers.

What You’ll Get in This Report

Food Gifting in the U.S., Second Edition, makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Food Gifting in the U.S., Second Edition, offers. The report provides extensive data presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from This Report

If your company is already doing business in the food-gifting market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for food gifts, as well as projected markets and trends through 2014.

This report will assist:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for food gifts.
  • Research and development professionals stay on top of competitor initiatives and explore demand for food gifts.
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to buy food gifts.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.
Chapter 1: Executive Summary
Scope and Methodology
Product Definitions
Specialty Foods are the Foundation of Food Gifting
Gift Baskets
The Art of Corporate Gift-giving
The Market for Gift-giving
The Market for Food Gifting
Self-Gifting Declines Overall, but Self-Gifting of Food Increases
Gift Card Sales Slip in 2009 but Remain the Ticket for Many Shoppers
Online Gift Card Sales Boom During the 2009 Winter Holiday Season
Trends in Gift-Giving
Influences on Buying Specialty Food Gifts
Gift-boxed and Seasonal Chocolates Remain a Major Sector of the Food Gifting Market
Venues for Food Gift Purchases
The Ex-patriot Food Gift Market
Brick-and-Mortar Retailers
Mainstream Retailers
Online and Direct Marketers
Average Gift Basket Prices Decline
Most Popular Items for Gift Baskets
Independent Gift Basket Companies Differentiate Through Customization
Trends in Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog
Favorite Specialty Food Gifts for Self-gifting
Specialty Food Gifts Purchased for Others
Types of Food Gifts Received by Consumers
Occasions for Buying Specialty Food Gifts
Recipients of Specialty Food Gifts
Consumer Spending Trends on Food Gifts
Influences on Consumer Choices of Food Gifts
Attributes Consumers Look for in Specialty Food Gifts
Sources of Specialty Food Gift Purchases
Reasons Consumers Do Not Buy Specialty Food Gifts
Ethnic Food Gifts a Hot Trend in 2010
Customized Food Gifts Are Offered by Most Online Food Gift Manufacturers
Organic/Wellness Food Gifts Continue to Gain Popularity
Food Gifting Opportunities Exist All Year Round
Industry Consolidation Reshuffles Market Leaders in Food Gifting
Food Gift Market Forecast for 2014
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Consumer vs. Corporate Markets


Chapter 2: The Specialty Food Gift and Overall Gift Market
Scope and Methodology
Key Points
Product Definitions
Types of Food Gifts
Specialty Foods are the Foundation of Food Gifting
Gift Baskets
Trends and Innovations in Food Gift Baskets
The Art of Corporate Gift-giving
The Market for Gift-giving
The Market for Food Gifting
Table 2-1: The U.S. Market for All Gifts and Food Gifts, 2007 and 2009 (in $Billions)
Consumer Gift-giving Down 8% from 2004 to 2006, but Increases from 2007 to 2009
Average Annual Per-Person Expenditures on Gifts Steadily Increase from 2007 to 2009
Table 2-2: Average Annual Per Person Expenditures on All Gifts Overall, 2006-2010 (U.S. Adults)
Average Annual Per-Person Expenditures on Food Gifts Increase More Rapidly than Per-Person Expenditures on All Gifts from 2007 to 2009
Table 2-3: Average Annual Per Person Expenditures on Food Gift Purchases, 2006-2010 (U.S. Adults)
Table 2-4: Per Person Annual Food Gift Purchases as Percentage of Total Annual Per Person Gift Purchases, 2006-2010
Food Gifting Trends--2008, 2009 and 2010
In 2008, Half of All Christmas Gifters Gave Food Gifts
Overall Gift-Giving Was Down During Winter Holiday Season in 2009, but Food Gifting Was Up
Easter Spending Up 1.8% in 2010
Self-Gifting Declines Overall, but Self-Gifting of Food Increases
Gift Card Sales Slip in 2009 but Remain the Ticket for Many Shoppers
Private-label Gift Card Sales Fall in 2009
Online Gift Card Sales Boom During the 2009 Winter Holiday Season
Online Store Gift Card Sales Remain Strong
General-purpose Gift Card Purchase Increase Slightly
Most Popular Gift Cards
Gift Card Purchasing Changing in Value, Type and Venue
Innovation Drives Gift Card Sales
Gift Cards and the Credit Card Accountability, Responsibility and Disclosure (CARD) Act
Trends in Gift-Giving
Gourmet and Organic Foods Fuel Growth in Food Gifting
Influences on Buying Specialty Food Gifts
Corporate Gift Market Mature and Difficult to Measure
Gift-boxed and Seasonal Chocolates Remain a Major Sector of the Food Gifting Market
Table 2-5: Gift-boxed and Seasonal Chocolate Sales, 2008 and 2009 (in millions of dollars)
New Gift-boxed Chocolate Products Surged in 2006 and 2007, Declined Annually from 2007 to 2009
Table 2-6: Number of Gift-boxed Chocolate Products Introduced to the U.S. Market, 2005-2009
Russell Stover Continues to Lead the Gift-boxed Chocolates Sector
Table 2-7: Leading Gift-boxed Chocolate Sales by Company, 2008 and 2009 (in millions of dollars)
Table 2-8: Unit Sales and Average Price of Gift-boxed Chocolates, 2007-2009
Table 2-9: Share of Total Gift-boxed Chocolate Market by Company, 2008-2009
Easter Chocolate Candy Sales Surpass Valentine's Day Candy Sales in 2008 and 2009
Table 2-10: Easter Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Boxed Chocolates Remain Most-purchased Chocolate Gift for Valentine's Day
Table 2-11: Valentine’s Day Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Lindt & Sprungli Outpaces Russell Stover's in Gift-Boxed Chocolate Sales at Christmas
Table 2-12: Christmas Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Halloween Chocolate Candy Sales Flat From 2008 and 2009, While Other Holiday Chocolate Candy Sales Leap 23%
Table 2-13: Halloween Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Table 2-14 :Other Seasonal Chocolate Sales by Company, 2008 and 2009 (in thousands of dollars)
Independents and Franchises Cater to Local Professionals
Table 2-15: Independent Companies’ Average Retail Price, Corporate vs. Consumer Gift Baskets, 2007-2009


Chapter 3: Food Gift Market Channels
Key Points
Venues for Food Gift Purchases
Table 3-1: Percent of Food Gift Sales by Channel, 2007-2009
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Sales at Brick-and-Mortar Retailers Increase 11% from 2007 to 2009
Table 3-2: U.S. Food Gift Sales by Brick-and-Mortar Retailers, 2007-2009 (In $Millions)
Mainstream Retailers
Target Features Tailgate Party Packs with School Colors and Logos
Walmart Offers Many Online Food Gifts
Grocery Retailers Favor Gift Cards, Even Though Grocery Stores are a Prime Destination for Food Gift Shoppers
Sales of Gift-boxed Chocolates—the Original Food Gift—Shift from Traditional Retailers to Online
Will Department Stores Recover from Competition as Food Gift Purveyors?
Costco Food Gifts
The Ex-patriot Food Gift Market
Leading Competitors in the Gift-Boxed Chocolates Market
Profiles of Selected Gift-boxed Chocolate Companies
The Hershey Company
Company Overview
Financial Information
Products
Lindt & Sprungli AG
Company Overview
Lindor Products
Seasonal Confectioneries
Other Chocolate Products
Russell Stover
Company Overview
Products
Corporate Best-sellers
Gift Baskets
Natural/Organic and Specialty Foods Retailers
Williams-Sonoma
Profiles of Selected Natural/Organic and Specialty Foods Retailers
Cost Plus, Inc.
Business Overview
Financial Information
Products
Company Strategy
Online and Direct Marketers
Table 3-3: Percent of Consumers Purchasing Food and Perishables from Direct Marketers’ Catalogs, 2007-2009
Table 3-4: Percent of Consumers Purchasing Food and Perishables via Phone, Mail and Internet, 2007-2009
Table 3-5: Leading Demographics of Consumers Purchasing Food and Perishables via Phone, Mail and Internet by Index Rating, 2007-2009
Table 3-6: Regional Comparison of Consumers Purchasing Food and Perishables via Phone, Mail and Internet by Index, 2007-2009
Table 3-7: Employment Characteristics of Consumers Purchasing Food and Perishables via Phone, Mail and Internet, 2007-2009
Online Shopping Increases 53% from 2006 to 2009
Profiles of Selected Specialty Food Direct Marketers
Dean & DeLuca
Company Overview
Food Gifts and Other Products
Harry and David Holdings, Inc.
Company Overview
Financial Information
Food Gift Products
Company Strategy
Houston Harvest Gift Products LLC
Company Overview
The Wisconsin Cheeseman
Company Overview
The Wisconsin Food Gift Company
Company Overview
Zabar's and Company, Inc
Company Overview
Food Gift Baskets, Boxes and Crates
Online Gift and Floral Companies
1-800-FLOWERS.COM
Company Overview
Financial Information
Best-selling Food Gifts
Company Strategy
Other Online and Direct Marketing Companies—Many Small Regional Competitors
Amazon.com
Table 3-8: Amazon.com’s “Most Gifted” Gourmet Food Gift Products, Prices, Manufacturer and Customer Rating, May 2010
Independent and Franchise/Distributorship Gift Basket Companies
Independent Gift Basket Companies
Average Gift Basket Prices Decline
Table 3-9: U.S. Independent Gift Basket Companies’ Average Retail Price, Corporate vs. Consumer Gift Baskets, 2006-2009
Most Popular Items for Gift Baskets
Independent Gift Basket Companies Differentiate Through Customization
Profile of Gift Basket Business Owners
Franchise and Distributorship Food Gift Companies
Selected Franchise Gift Basket Company Profiles
Candy Bouquet
Company Strategy
Edible Arrangements


Chapter 4: The Food-gifting Consumer
Key Points
Note on Experian Simmons and Packaged Facts Data
Trends in Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog
Table 4-1: Leading Demographic Indexes for U.S. Adult Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog During Period February 2009 to March 2010
The Effect of the Economy on Consumer Spending
Table 4-2: Consumers’ Response to Question About Overall Spending in Today’s Economy: To What Extent Do You Agree or Disagree with the Statement “I am Spending Less These Days Because of the Economy”
Favorite Specialty Food Gifts for Self-gifting
Table 4-3: Favorite Specialty Food Gifts for Self-Gifting, 2007 and 2010
Specialty Food Gifts Purchased for Others
Table 4-4: Favorite Specialty Food Gifts for Others, 2007 and 2010
Types of Food Gifts Received by Consumers
Table 4-5: Specialty Food Gifts Received, by Type 2007 and 2010
Occasions for Buying Specialty Food Gifts
Table 4-6: Percent of Consumers Purchasing Food Gifts, by Occasion, 2007
Table 4-7: Consumers’ Response to Question: “For Which Occasion(s) Did You Purchase a Food Gift in the Last 12 Months?” - 2010
Recipients of Specialty Food Gifts
Table 4-8: Recipients of Specialty Food Gifts, 2007
Table 4-9: Consumers’ Response to Question: “For Which Recipient(s) Did You Purchase a Food Gift in the Last 12 Months?” - 2010
Consumer Spending Trends on Food Gifts
Table 4-10: Percentage Purchasing Specialty Food Gifts, by Number of Recipients, 2007
Table 4-11: Consumers’ Response to Question: “In the last 12 months, to how many people, excluding yourself, have you given specialty food gifts?” - 2010
Table 4-12: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, to how many people, excluding yourself, have you given specialty food gifts?” - 2010
Table 4-13: Consumers’ Response to Question: “How much do you typically spend on a specialty food gift?” - 2010
Table 4-14: Consumers’ Response to Question: “In the last 12 months, how much did you spend overall specialty food gifts?” - 2007 and 2010
Table 4-15: Consumers’ Response to Question: “In the past 12 months, about what percentage of your total food gift spending was for the winter holidays (Christmas, Hanukkah, Kwanzaa) food gifts?” - 2010
Table 4-16: Consumers’ Response to Question: “How would you compare your spending on specialty food gifts in the last 12 months to what you spent a few years ago?” - 2007 and 2010
Influences on Consumer Choices of Food Gifts
Table 4-17: Influences on the Purchase of Favorite Specialty Food Gifts, 2007
Table 4-18: Consumers’ Response to Question, “If you purchased a specialty food gift in the last 12 months, What Factor(s) Influenced the Purchase of the Food Gift?” - 2010
Attributes Consumers Look for in Specialty Food Gifts
Table 4-19: Attributes Looked for in Specialty Food Gifts, 2007
Table 4-20: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, which attribute(s) did you consider in purchasing a specialty food gift?” - 2010
Sources of Specialty Food Gift Purchases
Table 4-21: Sources of Specialty Food Gift Purchases, 2007
Table 4-22: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, from which source(s) did you purchase the specialty food gift?” - 2010
Reasons Consumers Do Not Buy Specialty Food Gifts
Table 4-23: Reasons Given By Consumers for Not Buying Specialty Food Gifts, 2007 and 2010


Chapter 5: Future Trends and Market Forecast
Key Points
Most Popular Food Gifts in 2010
Ethnic Food Gifts a Hot Trend in 2010
Customized Food Gifts Are Offered by Most Online Food Gift Manufacturers
Organic/Wellness Food Gifts Continue to Gain Popularity
Food Gifting Opportunities Exist All Year Round
Industry Consolidation Reshuffles Market Leaders in Food Gifting
Food Gift Market Forecast for 2014
Table 5-1: U.S. Food Gift Sales Forecast by Channel, 2007-2014 (in $millions)
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Consumer vs. Corporate Markets
Table 5-2: U.S. Food Gift Sales Forecast by for the Consumer, Corporate and Total Markets, 2007-2014 (in $millions)
How to Build a Successful Online Food Gifting Business
Keys to Successfully Launching a Gift Basket Business
First Steps
Create a Gift Basket Workspace
Stock Up on Gift Basket Ingredients
Building a Customer List
Managing the Business Side of a Gift Basket Operation
Gift Basket Industry Statistics
Risks In the Age of Recession--The Travails of igourmet


Appendix: Company Names and Addresses

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